Broker says watch for market opportunities to move soybeans, empty bins
A commodity broker says now might be the best time to sell some of last year’s soybeans.
Mike North with Commodity Risk Management Group says, “It’s typically that time of the year when the soybean market is known to somewhat peak, and when we add in the fact that we’re still carrying over 400-million bushels of beans as we go through the next marketing year, the market is certainly going to have it’s own share of pressure.”
North tells Brownfield recent Chinese purchases are a good story to tell and there may be more coming, but he says Chinese buying often comes in spurts. “While it looks good today, that tap could get shut off tomorrow, leaving us not only with a big balance sheet, but also the realization of what looks like another good growing season.”
North says a lot of producers don’t want to sell at today’s prices and will likely try to move more soybeans in the fall, but the recent rally and the likelihood of basis widening out later might prompt some sales. North says if there are little pops in the bean market that carry corn, producers might sell more farm-stored grain to open their bins for what looks like an early harvest.